What Are The Legal Requirements Of Car Insurance

What Are The Legal Requirements Of Car Insurance ? (The Legal Requirements of Car Insurance)

Like every other insurance policy, car insurance has certain legal requirements and stipulations. The transport department of the UK government enforces strict motoring laws. Consequently, it is vital for all vehicle owners to be aware of the legalities of car insurance laws.

First and foremost, the car must be registered. It is illegal to drive a car that has not been registered with the DVLA which makes it a prerequisite of car insurance also.
Secondly, it is obligatory on the policyholder to keep the insured car roadworthy. In the UK, this means producing an MOT certificate when applying for or renewing your insurance policy. MOT is required on a car that is over 3 years old.
Thirdly, road tax on any insured car must be up-to-date. Insurance companies will not issue insurance without proof of payment of the road tax.

The most basic legal requirement of any existing insurance policy is that the details given by the policyholder are correct.
By law, within the UK, it is a legal requirement for every car to have at least a ‘third-party’ insurance policy; it is illegal to drive without it. This ensures that the driver is insured against any injuries to other people, or damage to property.
If they change during the existence of the policy, the insurance company must be informed. Without this, the contract becomes null and void and any claim will not be upheld.

If traveling abroad, it is necessary in some countries to carry a ‘green card’. This is an internationally recognized document which states that your insurance covers at least the minimum requirements of the country which you are visiting. Within Europe, most countries have the same requirements as the UK, so the green card is not needed. However, do always carry your certificate of insurance and always check that you have the right insurance before you leave.

Insured cars

In The USA this will vary state by state according to local regulation as well as the type of Auto Insurance Policy in place at the time. But It's pretty much the same as UK. It's always best to get coverage advice from your Insurance Agent.

As a general rule, If Coverage is afforded under the vehicle owners policy then it will act as primary coverage. If coverage is not available to the driver through the owners policy then the drivers own auto liability insurance can invoke as first party coverage The drivers auto insurance policy, depending on the policy and broad coverage providing, liability, uninsured motorist and medical portions of your personal auto insurance policy can follow you and provide coverage.

Your Personal auto Policy will "Not" follow you for operation of a hired business or commercial use vehicle.

If the "personal" use vehicle being driven has adequate active coverage then that policy is customarily treated as primary and any coverage the driver has is secondary or excess in the event damages exceed the limits of the vehicle owner's insurance policy or the event of no coverage for the operator under the owners policy.

If the vehicle owner has purchased a limited form type or a "named driver" policy. though sometimes economic, no coverage at all may be afforded to occasional or permitted drivers.

The degree of coverage beyond the above that may invoke are dependent on various factors such as the reason for driving the other vehicle, loaners, rentals or replacement status vehicles and other local or state regulations.

It's always best to talk with your agent and make sure you undertsand your coverage before loaning or borrowing another vehicle.
The Top Ten Insured (Quoted) Cars in the UK
Rank Make Model
1 FORD FOCUS ZETEC 16V
2 FORD KA
3 VAUXHALL VECTRA LS 16V
4 PEUGEOT 206 LX
5 FORD FOCUS LX 16V
6 VAUXHALL CORSA SXI 16V
7 FORD MONDEO ZETEC
8 FORD FOCUS GHIA 16V
9 FIAT PUNTO ACTIVE 8V
10 NISSAN MICRA S

In the UK - the general rule is that the driver's own vehicle insurance will pay for any accidents other than when the driver is driving a car with permission and is named on the car owner's policy of insurance to drive the vehicle. If the driver has no insurance the driver has a personal liability to pay for injuries and damage to third parties, but either the car owner's insurance can be used to meet a compensation claim or the Motor Insurers Bureau will step in to pay compensation if no car insurance is available from either the driver or the owner. See the related link entitled "accident car insurance" - for an explanation of all forms of car insurance in the UK and the function of the MIB.
Insurance Coverage in Someone Else's vehicle - US
In The USA this will vary state by state according to local regulation as well as the type of Auto Insurance Policy in place at the time. But It's pretty much the same as UK. It's always best to get coverage advice from your Insurance Agent.

Insurance no license

Pennsylvania law requires all Pennsylvania motor vehicle owners to maintain vehicle liability insurance (financial responsibility) on a currently registered vehicle. Vehicle liability insurance covers the property damage or injuries you may cause others in a crash.

A lapse in insurance coverage results in the suspension of your vehicle registration privilege for three months, unless the lapse of insurance was for a period of less than 31 days and the owner or registrant proves to PennDOT that the vehicle was not operated during this short lapse in coverage. If PennDOT determines that you operated your vehicle without the required insurance, your driver's license will also be suspended for three months. The registration plate, sticker, card and driver's license must be surrendered to PennDOT in order to serve the suspension. Restoration fees of $50.00 and proof of insurance must be submitted prior to having either registration or driving privileges returned.

You can go online to request and print a free vehicle registration restoration requirements letter, which outlines certain criteria that must be met before a vehicle's registration can be restored. To request and print your restoration requirements letter, visit "Request a VR Restoration Requirements Letter". Users will need to provide the first eight numbers of the vehicle title number, the last four numbers of the Vehicle Identification Number (VIN) if the VIN is more than four digits long and the first two characters of the owner's last name or the first two characters of the company's name if a company owns the vehicle.

Answer
In the state of AZ, the insurance follows the car. Your own coverage may extend to a vehicle that you are using with permission but only as secondary coverage.
Answer 1
Until this answer is improved by an expert, this layman's answer will have to suffice.
IF the driver is not named on the vehicle's insurance, the terms of the insurance policy will dictate the handling of a liability claim for the accident in which the vehicle was involved.
Normally, if the driver is:
1. Legally licensed to drive, and
2. Has the permission of the owner of the vehicle to have been driving it at the time of the collision, then most policies will cover the "Permissive User."
Insurance follows the vehicle, not the driver. If the vehicle you borrowed does not carry insurance and you do, your insurance becomes secondary to cover the claim. The owner's insurance is primary.
Answer 1
Generally, throughout the insurance industry, if there is insurance on the vehicle involved in the collision, then that insurance is considered "primary,' and is the policy which will provide first coverage if coverage is extended to that driver.

Then, IF the primary coverage is not adequate [not enough money], the driver's insurance [considered secondary] will kick in for the balance owed on the liability claim, until its limit is reached.

typically the insurance on the car is primary.....if that policy has collision coverage (am assuming there is liability coverage as that is required).....the vehicle policy will repair that vehicle....if that vehicle does NOT have collision coverage and driver has a policy with collision coverage then drivers policy will step in (2nd)......if neither policy has collision coverage and the driver of your vehicle is at fault..........no company is repairing that vehicle..... and yes as mentioned which ever policy pays for the 'at fault' accident those rates are increasing......could be that both pay....yours for the other parties damage under liablity portion (if your vehicle is at fault) and drivers collision coverage (if your vehicle has no coll.cov)

That is determined by the coverage clauses in both parties policy. The person whose insurance company pays will be the one whose rates increase.
you usually are covered by the insurance for the car...if your friend drove your car and you had insurance on your car, they would be covered on your insurance, not their own
Answer
Generally not. While you're an insured driver, it's your the policy covers only your liability.
Answer
with permission from the owner, as long as there is no exclusion.........and you are not a 'regular' driver, if you are using the vehicle with any regularity, you would need to be listed as an insured driver.......
Answer
No. The person who owns the car and has it insured will be responsible through their insurance. However, they can take you to small claims court for the amount they had to pay and will win the case.